Why do we Celebrate Small Business week only once a year?
This Article by John Hill first appeared in Long Island Business News (May 30-June 5th Edition)
If you were fortunate enough to read Ray Keating commentary on Small Business Week, it should have given you something to think about.
But I have to wonder why we celebrate small business only once a year. This country was built on small business. Since the U. S. Small Business Administration was founded in 1953 they have delivered millions in loans, loan guarantees and other forms of assistance to small businesses.
When you look back on the SBA it was a long time in the making. In 1932 President Herbert Hoover to alleviate the financial crisis of the Great Depression created the Reconstruction Finance Corporation (RFC) and was adopted by President Roosevelt, and staffed by some of Roosevelt’s most capable workers. During World War II in order for small business to compete with the production capabilities of big business and the wartime government contracts, Congress created the Smaller War Plants Corporation (SWPC) in 1942. It provided loans to small businesses, and encouraged large financial institutions to make credit available to small enterprises, and advocated small business interests to federal procurement agencies and big businesses.
Then in July 1953 in the Small Business Act created the Small Business Administration with the understanding it was there to support, counsel, assist and protect the interests of small business concerns.
I know one thing for sure the Small Business Administration has continued to grow over the years. I wonder how many thousands of people work for the SBA now. Considering when President Roosevelt adopted the Reconstruction Finance Corporation, that was the foundation of the Small Business Administration it was, as I read. “Staffed by some of Roosevelt’s most capable workers” Doesn’t sound like he had thousands of people on his staff or they were needed to operate the Reconstruction Finance Corporation or the Smaller War Plants Corporation for that matter. It also looks like they were able to get things done in a much shorter time frame. At that time we did not have all of the technology that we have today.
The Small Business Administration has grown, and continues to grow with the mission statement of helping the interest of small business. But first you have to identify what the governments determines is small business. But first you may want to read the Small Business Act 247 pages, and a lot of references. You can spend a lot of time on the SBA Web site. It’s very involved and there is a lot of information.
Our Government considers companies up to 500 people in size, small business. To me that may be the case back in 1932 because all of the companies back then were small. Perhaps the government criteria for small business should be looked at again.
If you look at the latest statistics from 2011, 65% of the companies on Long Island are 1-4 employees. That does not take into consideration the number of Sole Proprietorships, which according to Keating’s Commentary would increase this percentage substantially. Have you ever heard of the SBA funding a company with just 4 employees, regardless of how long they have been in business?
New York State gave $20 Million to a large Pharmaceutical Company that is no longer located on Long Island. I wonder what would have happened if New York State gave $One Million Dollars to 20 small businesses on Long Island. I think we would see more people employed, the economy would be better, and perhaps our taxes would be lower. Small Business is the backbone of this country and it should be celebrated every week, not once a year.
